Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nall polish, at-home spa kits, cosmetics, and Palacetherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is ivolved in a business. The following transactions were selected from among those completed by NGS in August. Aug. 2 NOS sold 10 itens of merchandise to Salon World on account at a selling price of $1,000 (total); terms 1/10, n/30. The goods cost NGS $700. 3 NOS sold 5 identical items of merchandise to Cosmetics 4 You on account at a selling price of sase (total); terms 1/10, n/30. The goods cost NGS $425. 6 Cosmetics 4 You returned one of the itens purchased on August 3. The item could still be sold by NGs in the future, and credit was given to the customer. 10 Collected payment from Salon World, fully paying off the account balance. 20 Sold two at-home spa kits to Meghan witzel for $325 cash. The goods cost NGS $91. 22 Cosmetics 4 You paid its remaining account balance in full. Required: 1. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nall polish, at-home spa kits, cosmetics, and Palacetherapy items. Nicole uses a perpetual inventory system and is starting to realize all of the work that is created when inventory is ivolved in a business. The following transactions were selected from among those completed by NGS in August. Aug. 2 NOS sold 10 itens of merchandise to Salon World on account at a selling price of $1,000 (total); terms 1/10, n/30. The goods cost NGS $700. 3 NOS sold 5 identical items of merchandise to Cosmetics 4 You on account at a selling price of sase (total); terms 1/10, n/30. The goods cost NGS $425. 6 Cosmetics 4 You returned one of the itens purchased on August 3. The item could still be sold by NGs in the future, and credit was given to the customer. 10 Collected payment from Salon World, fully paying off the account balance. 20 Sold two at-home spa kits to Meghan witzel for $325 cash. The goods cost NGS $91. 22 Cosmetics 4 You paid its remaining account balance in full. Required: 1. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a journal entries for each transactions
Transcribed Image Text:Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells
things such as naill polish, at-home spa kits, cosmetics, and Palacetherapy items. Nicole uses a perpetual inventory system and is
starting to realize all of the work that is created when inventory is involved in a business. The following transactions were selected
from among those completed by NGS in August.
Aug. 2 NGS sold 1e items of merchandise to Salon World on account at a selling price of $1,000 (total); terms 1/18, n/30. The goods
cost NGS $70e.
3 NGS sold 5 identical items of merchandise to Cosmetics 4 You on account at a selling price of $85e (total); terms 1/10,
n/30. The goods cost NGS $425.
6 Cosmetics 4 You returned one of the items purchased on August 3. The item could still be sold by NGS in the future, and
credit was given to the customer.
10 Collected payment from Salon World, fully paying off the account balance.
20 Sold two at-home spa kits to Meghan witzel for $325 cash. The goods cost NGS $91.
22 Cosmetics 4 You paid its remaining account balance in full.
Required:
1. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in
the first account field.)
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